This is a phase I trial of ingested interferon-alpha (IFN-a) in insulin dependent diabetes mellitus (IDDM), an autoimmune disease. It will study the effect of IFN-a on immune function and Beta cell function and destruction in IDDM. Subjects with newly diagnosed IDDM will be enrolled for a treatment period of up to 12 months. Establishment of clinical improvement or immunosuppression with ingested IFN-a may lead to a placebo-controlled phase II-III trial with persistent improvement in clinical disease as a primary outcome. Eight patients were enrolled, and two withdrew for non-medical reasons. Four patients were on study medication for 12 months, and two have reached six months. Four of the six are still in the honeymoon period.